21.7k views
1 vote
Define: The amount by which the issuing price of a stock exceeds the par value.

User Azul
by
7.7k points

1 Answer

3 votes

Final answer:

The amount by which the issuing price of a stock exceeds the par value is called the premium or share premium.

Step-by-step explanation:

The amount by which the issuing price of a stock exceeds the par value is called the premium or share premium.

For example, if a company issues a stock with a par value of $10 and it is sold for $15 per share, the premium on the stock is $5.

The premium represents the additional value that investors are willing to pay for a share of the company's stock over and above its par value.

User Oleg Vaskevich
by
7.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.